Section 40-17-31 Levy and amount of tax; collection and distribution of proceeds.
Section 40-17-31
Levy and amount of tax; collection and distribution of proceeds.
(a) Every distributor, refiner, retail dealer, storer or user of gasoline shall collect and pay over to the state Department of Revenue an excise tax of $.07 per gallon plus a supplemental excise tax of $.05 per gallon upon the selling, use or consumption, distributing, storing or withdrawing from storage in this state for any use of gasoline as defined or otherwise referred to in this article, except gasoline sold for use as fuel to propel aircraft and which gasoline is subject to the tax imposed in subsection (d) of this section; and except gasoline and motor fuel, as defined in Section 40-17-1, sold for use by city and county boards of education to governing bodies of counties and incorporated municipalities, the Alabama Institute for Deaf and Blind, the Department of Youth Services school district, and private and church schools as defined in Section 16-28-1, and which offer essentially the same curriculum as offered in grades K-12 in the public schools of this state; provided that where any excise tax imposed by this section upon the sale, use or consumption, distribution, storage, withdrawal from storage in this state of such gasoline shall have been paid to the state by a distributor, refiner or by any retail dealer, storer or user, such payments shall be sufficient, the intent being that the tax shall be paid to the state but once.
(b) The state Department of Revenue is hereby authorized to issue to the United States certificates of exemption, upon forms prescribed by the department for use by the United States in purchasing gasoline or other fuels taxed by this section within the State of Alabama and which is paid for by the United States. Any person in reporting and paying the tax to the department may deduct the number of gallons of gasoline or other fuels taxed by this section sold to the United States, as shown by such certificate of exemption duly executed by the United States and filed with such report, and the department is authorized to adopt rules and regulations with respect to the issuance and use of such certificates.
(c) The revenue, less the cost of collection and all refunds authorized by law, obtained from the $.07 excise tax and the supplemental excise tax of $.05 per gallon on gasoline, naphtha and other liquid motor fuels, or any device or substitute therefor commonly used in internal combustion engines, as is provided for in this section, shall not be used for any purposes other than the following, namely:
(1) The Legislature hereby finds as a fact that of all the gasoline sold in this state not less than one and twenty-three hundredths percent thereof is used for marine purposes to propel vessels on inland and coastal waterways of this state. The Legislature hereby declares that it is the policy of this state to use the funds derived pursuant to this section from the sale of marine gasoline to provide for the programs and activities of the Marine Police, Marine Resources, and Wildlife and Freshwater Fisheries Divisions of the Department of Conservation and Natural Resources in this state. Thirty-five one hundredths of one percent of all state-imposed taxes collected pursuant to this section on the sale of gasoline (except gasoline and other fuels consumed in airplanes) shall be credited as follows: 60 percent to the State Water Safety Fund of the Marine Police Division and 40 percent to the Seafood Fund of the Marine Resources Division. In addition: a. An amount equal to seventy one hundredths of one percent of all state-imposed taxes levied pursuant to this section and collected on the sale of gasoline, except gasoline and other fuels consumed in airplanes, and which would otherwise be credited to the Public Road and Bridge Fund pursuant to Section 40-17-72 shall be credited to the Game and Fish Fund of the Division of Wildlife and Freshwater Fisheries. Provided, however, that the above credit to the Game and Fish Fund shall not diminish the allocations provided by Section 40-17-73; b. an amount equal to eighteen one hundredths of one percent of all state imposed taxes levied pursuant to this section and collected on the sale of gasoline, except gasoline and other fuels consumed in airplanes, and which would otherwise be credited to the Public Road and Bridge Fund pursuant to Section 40-17-72 shall be credited as follows: 60 percent to the State Water Safety Fund of the Marine Police Division and 40 percent to the Seafood Fund of the Marine Resources Division. Provided, however, that this additional credit to the State Water Safety Fund and Seafood Fund shall not diminish the allocations provided by Section 40-17-73.
(2) The revenue arising from the sale of gasoline as herein defined, except gasoline sold for use as fuel to propel aircraft and which gasoline is subject to the tax imposed in subsection (d) of this section, and except for revenues from the supplemental net tax proceeds, for all other purposes shall not be used for any purpose other than for the construction, improvement, maintenance, and supervision of highways, bridges, and streets, including the retirement of bonds for the payment of which such revenues have been or may hereafter be pledged. The payment of the per diem and mileage of members of county governing bodies when engaged in supervising the construction, improvement, and maintenance of highways, bridges, and streets, shall be construed as used in supervision; however, the governing body of each county is authorized to expend an amount not to exceed one-third of the total amount of such revenue that may be received by such county in the payment of any debt that may have been incurred by such county for the construction or maintenance of roads or bridges. This fund shall be allocated in the manner now provided by law. On the twentieth day of each month following that quarter of any fiscal year, all revenue derived from the sale of gasoline to be consumed in the motor of a boat or vessel as defined in subdivision (1) of this subsection shall be allocated to the State Water Safety Fund, Seafood Fund, and Game and Fish Fund.
(d)(1) Every distributor, refiner, retail dealer, storer, or user of gasoline or any substitute or device therefor sold for use as a fuel to propel aircraft shall collect and pay over to the state Department of Revenue an excise tax in accordance with the following schedule upon the selling, use or consumption, distributing, storing, or withdrawing from storage in this state for use as a fuel to propel aircraft:
a. Gasoline or other fuel used to propel aircraft powered by reciprocating engines shall be taxed at the rate of two and seven tenths cents per gallon.
b. Any fuel used to propel aircraft powered by jet or turbine engines shall be taxed at the rate of nine tenths of one cent per gallon.
(2) On July 31, 1977, or as soon thereafter as practicable, and at the same time in every year thereafter, the Commissioner of Revenue shall determine the total number of gallons of fuel upon which the tax levied in subdivision (1) of this subsection has been reported and paid to the state during the preceding 12-month period, and at the same time he shall ascertain the total net amount of revenue produced by the tax levied thereon. If the net proceeds of the tax for such period amount to more than $650,000, the rate of tax shall be reduced in decrements of three tenths of one cent per gallon with respect to the tax levied in paragraph a of subdivision (1) of this subsection and in decrements of one tenth of one cent per gallon with respect to the tax levied in paragraph b of subdivision (1) of this subsection to the extent required to maintain net collections for such period at a level of $600,000. If at any time after such a reduction the rate of tax collections declines to the extent that the $600,000 level for a similar 12-month period cannot be maintained, the rate of the tax shall be correspondingly increased in increments of three tenths of one cent per gallon with respect to the tax levied in paragraph a of subdivision (1) of this subsection and increments of one tenth of one cent per gallon with respect to the tax levied in paragraph b of subdivision (1) of this subsection to the extent required to maintain net collections for a similar period at a level of $600,000. It is the legislative intent by the above provisions to maintain collections at a $600,000 level per annum.
(3) The revenue, less the cost of collection, obtained from the tax levied in subdivision (1) of this subsection shall be paid into the State Treasury to the credit of the Alabama Department of Transportation and be used exclusively for the purpose of paying the cost of acquiring, engineering, construction, improvement, and maintenance of existing or proposed airports and other air navigation facilities within the state, for the payment of the salaries of all employees who have been transferred from the Alabama Department of Aeronautics to the Department of Transportation under Article 12 of Chapter 1 of Title 23 and for the payment of administrative expenses incurred by the Department of Transportation in performing aeronautical activities and for the further purpose of creating a sinking fund for the payment of the interest and retirement of the principal of all bonds which may be hereafter lawfully issued, sold and delivered for funds to be used exclusively for the enumerated purposes.
(4) There is hereby exempted from the provisions of subdivision (1) of this subsection and from the excise tax imposed by this section the sale, use or consumption, distribution, storage, or withdrawal from storage in this state of gasoline or any other fuel for use as a fuel to propel aircraft of a certificated or licensed air carrier with a hub operation within this state, for use in conducting intrastate, interstate or foreign commerce for transporting people or property by air. For the purpose of this subdivision, the words "hub operation within this state" shall be construed to have all of the following criteria:
a. There originates from the location 15 or more flight departures and five or more different first-stop destinations five days per week for six or more months during the calendar year; and
b. Passengers and/or property are regularly exchanged at the location between flights of the same or a different certificated or licensed air carrier.
(5) There is hereby exempted from the provisions of subdivision (1) of this subsection and from the excise tax imposed by this section the sale, use or consumption, distribution, storage or withdrawal from storage in this state of any aviation jet fuel sold or delivered in bond, or sold or delivered into a Foreign-Trade Zone, used to propel aircraft powered by jet or turbine engines operated by air carriers engaged in scheduled all-cargo operations being conducted on international flights or in international commerce. For the purpose of this subdivision, the following words or terms shall be defined and interpreted as follows:
a. Air carrier: Any person, firm, corporation, or entity undertaking by any means, directly or indirectly, to provide air transportation.
b. All-cargo operations: Any flight conducted by an air carrier for compensation or hire other than a passenger carrying flight, except passengers as specified in sections 121.583 (a) or 135.85 of the Federal Aviation Regulations, as amended.
c. International flights: Any air carrier conducting scheduled all-cargo operations between any point within the 50 states of the United States and the District of Columbia and any point outside the 50 states of the United States and the District of Columbia, including any interim stops within the United States so long as the ultimate origin or destination of the aircraft is outside the United States and the District of Columbia.
d. International Commerce: Any air carrier engaged in all-cargo operations transporting goods for compensation or hire on international flights.
(e) Every distributor, refiner, retail dealer, or storer of gasoline or other fuels taxed by this section shall add the amount of the excise tax levied and assessed herein to the price of the gasoline or other fuels taxed by this section, it being the purpose and intent of this provision that the tax levied is in fact a levy on the consumer or user with distributor, refiner, retail dealer or storer, or in the case of a licensed user, acting merely as an agent of the state for the collection and payment of the tax to the state.
(Acts 1935, No. 194, p. 256; Acts 1936, Ex. Sess., No. 51, p. 28; Acts 1936-37, Ex. Sess., No. 157, p. 179; Code 1940, T. 51, §647; Acts 1943, No. 478, p. 422; Acts 1945, No. 367, p. 590, §1; Acts 1949, No. 72, p. 98; Acts 1949, No. 649, p. 998, §1; Acts 1953, No. 772, p. 1036, §2; Acts 1955, 1st Ex. Sess., No. 44, p. 73, §1; Acts 1961, No. 948, p. 1523, §1; Acts 1963, No. 254, p. 662, §1; Acts 1967, Ex. Sess., No. 221, p. 278; Acts 1977, No. 674, p. 1163; Acts 1979, No. 79-714, p. 1267; Acts 1986, No. 86-214, p. 282, §6; Acts 1987, No. 87-553, p. 854, §1; Acts 1991, No. 91-672, p. 1310, §1; Acts 1992, No. 92-203, p. 486, §1; Act 2000-220, p. 328, §44; Act 2000-736, p. 1608, §1; Act 2002-153, p. 401, §1.)